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[As I See It]

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While we are waiting for progress updates, it is interesting to look back at some of the the many reasons why we have chosen to invest in Applied Oil Technology. Below is a piece that discusses the confirmation of Tao's theoretical work via visual observation at the nano-scale level. As you may remember, they used small-angle neutron scattering at the National Institute of Standards and Technolgy to obtain data and photographic images of the changes in an oil sample after an electric current is applied. On the QSEP website is another article (under technology reports) that shows some of the photos at the nano level.

Update: Confirmation of STWA Effect on Crude Oil at Nano Level
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Testing at National Institute of Standards and Technology Provides Evidence of Decreased Viscosity That Could Make Crude Oil Easier and Cheaper to Transport

SANTA BARBARA, CA--(Marketwire - September 17, 2010) - STWA, Inc. (OTCBB: ZERO) ("STWA" or the "Company"), an innovative company focused on technologies that improve energy efficiency, announced today that Dr. Rongjia Tao, Department Chair of Temple University's Physics Department, has captured microscopic images of the Company's technology decreasing the viscosity of crude oil.

There is a direct correlation between the time and expense of extracting and transporting crude oil with its viscosity. STWA aims to provide a turnkey solution to change the way that oil explorers, drillers and wholesalers manage oil, thereby improving their efficiency and profitability.

"The pictures obtained by Dr. Tao clearly show STWA's technology affecting crude oil at the nano-scale level," commented Mr. Cecil Bond Kyte, Chairman and CEO of STWA, Inc. "This evidence supports our upcoming testing of the AOT™ technology with the U.S. Department of Energy at their Rocky Mountain Oilfield Testing Center (RMOTC). This confirmation is another significant milestone for the company and evidence that will be helpful in securing the commitments needed in our next phases of development."

On August 2 and 3, 2010, a group led by Dr. Rongjia Tao from Temple University conducted experiments using small-angle neutron scattering at the National Institute of Standards and Technology. Dr. Tao's team used the best technology available to investigate at a nano-scale level the effects produced by STWA's Technology. The tests captured data and pictures with and without the field, confirming scientific evidence of its effect at a molecular level.

Mr. Kyte added, "We have used the most sophisticated technology available to us for watching, in real time, how our technology affects crude oil. The team was able to observe and record images at a nano-scale to examine direct evidence of our technology on the microstructure of crude oil aggregating it into chains, the basis by which our technology operates." Mr. Kyte concluded, "As global reserves continue to shift to heavier, more expensive crudes, our technology's ability to reduce crude oil's viscosity becomes increasingly relevant and valuable in enabling pipelines to operate faster and more efficiently on a global scale."